IMF: Global output's Long-term losses are close to 2% due to shifting in foreign direct investment

The International Monetary Fund revealed that the long-term losses of 2% of global output due to the shift of foreign direct investment confirm that global integration needs robust defense

He emphasized that emerging market and developing economies are more exposed to FDI outflows and diversions to other regions and countries compared to developed economies, in part because they depend more on inflows from geopolitically distant countries.

The Fund indicated that the escalation of global geopolitical tensions made companies and policymakers to increasingly try to put strategies to make supply more flexible by focusing production at the domestic level or shifting to other trusted countries.